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Real estate contracts are legally binding documents that homebuyers and sellers enter into to protect the interests of both parties. If one party doesn’t adhere to the terms laid out in the contract, they could be taken to court and wind up owing damages to the other party. Here’s what you should know to ensure a smooth buying process.

What Are the Types of Contracts?

There are three main types of contracts in real estate.

  • Purchase Agreement: The most common type of contract, this document is used when buyers purchase a home from a seller.
  • Real Estate Assignment Contract: When an investor wants to purchase the rights to a property but intends to sell it to the highest bidder, this document is used. This is common for “fixer-upper” homes sold at auction.
  • Lease Agreement: When commercial or residential properties are rented, a lease agreement is used to outline key details, such as monthly rent, the security deposit, and the terms for maintaining the property. 

What Should the Contract Contain?

real estatePurchasing a home is a significant investment, which is why every detail should be covered in the contract. Finance terms, including the type and amount of the mortgage, will be outlined, as well as who will cover the closing costs.

The contract may also include a contingency clause, in which the buyer can walk away from a property if there are considerable issues discovered during the home inspection. A contract can also indicate which appliances will be left in the home.

Additionally, the contract should outline a closing date. This time frame will be agreed upon for completing the purchase of the house and is usually a period of 30, 45, or 60 days. If you need to sell your current property before the sale of your new home is finalized, you may also be able to include that as a contingency.

How Can a Real Estate Attorney Help You?

As you can see, there are several details to consider when purchasing a home. An attorney who is well-versed in real estate can walk you through every aspect to ensure your rights are fully protected.

Attorneys perform title searches to ensure there are no major financial issues, such as liens or judgments against the house. In such cases, the house isn’t really in the seller’s name. This can present significant hurdles for interested buyers, which an attorney can help you avoid.

 

If you’re buying your first home in West Moreland, Allegheny, or Armstrong County, PA, turn to the Law Offices Of Robert B. Liotta, Esq. This trusted real estate attorney has more than a decade of experience and will help you navigate the purchase of your home. Find out more about his approach to homebuying online or by calling (724) 334-9870.

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